Critical illness insurance is a form of health insurance that provides
a tax-free lump-sum payment when you contract or are diagnosed with one
of the 24 covered conditions and survive that situation usually by 30
days. Some of the covered conditions would be cancer, heart attack,
stroke, bypass surgery, blindness, deafness, kidney failure etc. (see full list of covered conditions).
Group C.I. significantly differs from individual C. I. due to underwriting.
Individual C.I. is medically underwritten and part of the underwriting
takes into consideration your family health history as well as your own
health history. Many applications have been postponed, rated or
declined because of family health history (Mother, father, siblings).
Travel to foreign countries can have an adverse affect on the
underwriting of an individual plan as well as activities and hobbies.
Group C.I., set up as a mandatory plan, is guaranteed issue up to
$100,000.00 of benefit, without the consideration of personal
pre-existing conditions or family history or where you might travel to,
or the activities you are involved in.
The plan may be set up at a local association level, a Provincial Association or nationally.
The amount of coverage can vary from $10,000.00 to $100,000.00, however
each association that adopted the benefit group plan would have to
elect a specified amount they wanted to have in place for each member.
The cost would be based on the average age of the membership male and
female. The cost would adjust only if the average age would change in
Having a group plan in place will allow many people who would otherwise
be declined or rated to have up to $100,000 of Critical Illness benefit
in place. As there are no pre-existing conditions to be concerned with,
someone, for example, who had a heart attack in the past could have a
critical Illness plan and would be covered should they have another
heart attack. Existing conditions, for example, multiple sclerosis,
current diagnosis, would not be covered.
Group Critical Illness properly set up for the benefit of the members
could attract those who chose not to be part of the membership.
The group plan would allow members, who currently do not qualify
individually for C.I. coverage, to buy a plan and add this important
benefit to their financial portfolio.
The plan also allows spouses to take advantage of the group plan;
however, the spouse’s plan would have to be underwritten with a “knock
out” medical questionnaire.
The Association would benefit financially as it would receive an administration or endorsement fee.
For more information please contact Jack Moran in Ottawa